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Microsoft Responds to Leaked Memo

AbbeyRoad writes "CNN, has a story on Microsoft's response the internal memo previous leaked: "Microsoft believes many of its efforts to market its products against Linux and open source are backfiring, according to a memo posted on the Internet. ... Microsoft declined to comment on the authenticity of the memo, and did not answer when asked if it believes its marketing against Linux and open source has been effective. ... Microsoft spokesman Jon Murchinson said: ''The document in question seems to suggest that the basis for evaluating products has been long-term customer value, and that's something we agree with. I think our marketing is geared toward that issue, toward long-term customer value.'' ""

28 of 362 comments (clear)

  1. And... by inerte · · Score: 5, Funny

    long-term customer value

    With the new licenses, the value increases every upgrade!

    1. Re:And... by walt-sjc · · Score: 5, Interesting

      While your poor attempt at humor is noted, the facts are that many larger businesses / government agencies use the same software for much longer time periods than the typical Microsoft product lifetime. Many systems are custom software - software that usually needs only minor enhancements over its lifetime, or continually evolving depending on business need.

      In looking at TCO, the MS numbers begin to fail when you take into the constant cost of licenses, upgrades, re-deployments, re-porting custom software, constant re-training / recertification of staff to handle the "latest and greatest" versions of windows, etc. Many of these costs are hidden, but valid. If you look at any flavor of UNIX, they haven't changed much in how they work or how you interface to them.

      It wouldn't be so bad if MS just continued to improve their core (kinda like every other OS on the planet does), but it seems that with every revision or so they replace core functionality, radically change
      look and feel, interfaces, API's, management tools, etc. This costs business big money. It's that constant sprial of useless updates and repurchasing the same core functionality over and over again.

      Many (most?) businesses were caught blindsided by the true scope of the problem, and many MS pundits STILL don't understand. It's easy to get caught up in the "ease of use" arguments, and the relativly low upfront cost (although the upfront costs is nowhere NEAR as low as it used to be.) Now, many businesses are stuck with proprietary MS based systems and face a potentially HUGE cost of migrating to other platforms. It's no wonder so many balk, especially in a down economy.

      On the good side, businesses and governments world-wide are beginning to wake up and realize that MS's answer isn't as good as they were led to believe. They are finding that they don't have the flexability, reliability, or control that they want, and the price is much higher than they expected.

      OK, so read the above carefully. In NO place did I say MS is bad, or that MS software is bad. I AM saying that if you buy into the MS paradigm, you are going to pay, and pay, and pay many times over for only incremental improvements in technology, and the true total costs of doing this is much higher than other competing systems.

    2. Re:And... by walt-sjc · · Score: 5, Insightful

      When MS stops releasing service packs and hot fixes, what choice will you have? Can you afford to be a target for every script kiddie on the planet? It's not open source where anyone can pick up and maintain old versions of the OS.

      MS announced that Office 11 won't run on Windows 98. What do you bet that Office 12 won't run on Win2K? History proves that MS changes the .doc format at every release. If you want to continue to seamlessly integrate with other users of MS products, you will have no choice but to upgrade. This will probably force you to upgrade your OS if nothing else will.

      So the answer to your question is "Microsoft." They are pretty good at forcing people to upgrade through planned obsolecence.

      IMHO, not releasing sercurity fixes for some of their not-so-old products is a crime. Win98 is only 4 years old, Nt4 was sold as recently as 2 years ago. MS has made MORE than enough off those products to support them (from a security standpoint) for at LEAST 10 - 15 years.

      Most other OS vendors charge customers an annual maintenance fee (generally about 20% of the purchase price) per year if you want to continue to get updates. IBM still maintains and supports OS's and HARDWARE for machines that are 25 years old or MORE - and they don't have NEAR the userbase of ANY windows product.

      MS has other options too. Sell off support to some third party company. Let THAT company charge for, and provide updates for MS's old code. MS WILL NOT do that because it breaks their business model of forcing upgrades.

      Now I'll go out on a limb here (I'm not an MS fan by any stretch of the imagination) but MS has every right to do this (yeah, I just said above that it should be a crime, but it currently isn't.) For the way they designed their revenue stream, it's the right move for them. I'll go further to say that anyone who buys MS products should be aware of this, and plan (budget) for this. It's part of your TCO. Note that you can actually go to MS Licensing v 6 and pay through the nose anually, but that still won't get you support for older releases.

    3. Re:And... by walt-sjc · · Score: 5, Interesting

      Again, when MS stops releasing security fixes for you product, then you will have no choice. That is not an issue for open-source systems, and other vendors of commercial OS's generally support their OS's for MUCH longer than MS does. Sun is still providing updates for Sunos 4 which is something like 8 years old, IBM still supports mainframe OS's from over 20 years ago, HP does the same.

      Of course if you LIKE getting hacked and your business doesn't depend any info stored on these old systems, then stay with the old stuff. No big deal to ME.

  2. What the hell... by hermescom · · Score: 5, Funny
    "This interview is over," concluded the irate MS representative after numerous agressive questions.

    "I will see you back here next year, for a debate on our Halloween VIII memo, now in development." he proceeded to add.

    Sources indicate that next year's halloween memo will require 20Gig for a full install, but will be available as a "web-service" for a small subscription fee.

  3. reality check by iterations · · Score: 5, Insightful

    ''The document in question seems to suggest that the basis for evaluating products has been long-term customer value, and that's something we agree with. I think our marketing is geared toward that issue, toward long-term customer value.''

    hmm.. marketing and product development are two VERY different things, no?

    1. Re:reality check by sql*kitten · · Score: 5, Insightful

      hmm.. marketing and product development are two VERY different things, no?

      Marketing is the process by which companies work out what the market wants, and how its products can meet that want. Good marketing - and no-one can deny that Microsoft are excellent marketers - is tightly integrated with development, so that customer demands can influence development priorities and technological developments can be pitched to customers. There should also be a lot of cross pollination, it's not uncommon for developers to do a stint as "pre-sales engineers" and marketers to do a stint as a "product manager".

    2. Re:reality check by jonadab · · Score: 5, Insightful

      > If you want to make money..., you first find something that people
      > want, and then develop products to fill that need.

      That works if you want to make a reasonable amount of money, but if
      you want to make trainloads of money, you have to find something you
      can produce in large quantities cheaply, that other corporations will
      be unable to exactly duplicate. That's the hard part. Then you hire
      a bunch of marketing people to make everyone WANT this product, and
      you're all set. Whether the product was something people really
      wanted before your marketing people got to them is of only partial
      importance. It does make the marketing job easier, but its impact
      is not nearly as significant as you might think. With the right
      marketing campaign, you can sell anything. I'm convinced you could
      sell used dental floss with the right marketing. (That would not
      be a useful business strategy, of course, because other companies
      could readily produce lots of their own used dental floss to sell,
      driving down the price to next-to-nothing, and then you could no
      longer afford to pay your marketing people. The trick is to find
      something nobody else can produce, so you can set the price where
      you want it.)

      And BTW, when I originally came up with that explanation, I was not
      thinking of MS. I was thinking of McDonalds. There are other fast
      food joints, yes, but McDs employs creative use of trademarks and
      customer perception to make sure that none of the competitors can
      really deliver quite exactly the same product in the eyes of the
      consumer. That said, Microsoft is another example of the same phenomenon.

      --
      Cut that out, or I will ship you to Norilsk in a box.
  4. If only.... by Salden · · Score: 5, Funny
    ...they had released Palladium sooner. That way, they could have kept the memo from being leaked in the first place.

    I wonder how Palladium is supposed to stop cut-n-paste though...

  5. Truly amazing by slayer99 · · Score: 5, Insightful

    A CNN story and a Slashdot article about 39 words of vapid marketspeak from some random Microsoft employee.

    --
    Martin Brooks / Slayer99 #linux / UIN 2178117
  6. s/marketing/products/G by coene · · Score: 5, Funny

    "I think our marketing is geared toward that issue, toward long-term customer value."

    Now if only their PRODUCTS were geared towards long-term customer value, maybe they would be having more success.

  7. Perhaps Apple is Not Quite So Predatory by ausoleil · · Score: 5, Insightful

    "Rather than attempting to promote Linux and Open Source as worthwhile competitors, Slashdot and its parent company insist on attacking Microsoft."

    You are implying that VA Software created the memo and leaked it to CNN?

    It would seem that the article was written by a bona fide news source, and that it is onl;y being echoed here.

    Fact is, the battle for market supremacy in the server room and on the desktop is of paramount importance to most of the readers of /.

    Fact is, Microsoft itself created this "bad news."

    You imply it is cowardly to post these articles rather than extol the virtues of the competition. Hmmm, I daresay that you are being cowardly for attacking the messenger rather than the message.

    "Apple is every bit as proprietary as Microsoft, even going so far as to monopolize their hardware market and filing numerous lawsuits to combat those attempting to mimic their 'look and feel', something that even Microsoft does not attempt to do."

    The most famous suit was the one against Windows, and Microsoft.

    They lost, BTW.

    "I propose that this site state its purpose"

    I think they do.

    Look upward at the banner at the top of the screen.

    It says "News for Nerds. Stuff that Matters."

    I fail to see how this memo fails to qualify as exactly that.

  8. Re:Microsoft better be concerned by signine · · Score: 5, Insightful

    They are dependant on the marketing and business schemes and not the quality of their product. If the above isn't working then they better become concerned.

    Actually, Microsoft does produce a quality product, despite what the Linux-obsessed masses seem to think. It does have it's shortcomings, not the least of which being the price tag, but when it comes down to it, what Microsoft should be keeping in mind is that they have the edge when it comes to support and useability. Linux and Apache may well perform 10% faster, but an existing company typically has to hire a Linux admin to do that. Instead they can just throw money at buying a Windows Server License, IIS, and make a couple support calls to Microsoft to get it all up and running properly. If it ever breaks and the admin can't figure out the ridiculously simple administration tools, he can call Microsoft and have them fix it.

    Sun does essentially the same thing, but is substantially more expensive, has less application support, and generally also requires hiring expert technicians. Microsoft products just do what they're supposed to do, and do them reasonably well. This is why Microsoft has the edge, it's EASY. MacOS might be a challenger if they had Enterprise level server support and hardware that didn't cost an arm and a leg, and third party support.

    Lets face it, Linux has a long time to beat out Microsoft in Workstation land, and for companies that want to be able to hire any random Joe for pennies and not have to document every step of their network, Microsoft is more or less the only choice.

    Interface, support, cost. The overhead to pay MS for software and support is less than hiring Senior UNIX Admins, and that's basically what it all comes down to.

    --
    If there is a God, you are an authorized representative. - Kurt Vonnegut Jr.
  9. Who to sue? by e_n_d_o · · Score: 5, Interesting

    I'm just curious. Let's say MS finds an IP "violation" in the Linux kernel, in some fairly core area. Which of these do they have the right to sue, and who would they most likely sue?

    1. Linus.
    2. Developers who wrote IP violating code.
    3. Red Hat / SuSE / Debian / Mandrake / other distros.
    4. Companies selling Linux-based devices e.g. Tivo.
    5. Companies deploying Linux in their workplaces.
    6. Cowboyneal.

    Basically what I'm asking here is this: If Linux were found to be in violation of someone's (MS's) IP, would it be illegal to sell/distribute Linux or just to "consume" it?

    1. Re:Who to sue? by GigsVT · · Score: 5, Insightful

      Nearest deep pocket is the rule of thumb in any civil suit.

      That would be Red Hat, with their 200 million in the bank. Small change for a company like MS, but at least it could pay the legal fees if they won, and take down the largest pure play Linux company.

      Of course, IBM might just have a problem with that little strategy, and has the muscle to beat MS into the ground, or at least cost them a lot of money. I could see IBM buying Red Hat just to avoid the precedent should MS win.

      Red Hat knows this, which is why you don't see NTFS in their kernels, or MP3 players in their distro, things like that. They know they are the nearest deep pockets in a lot of these cases.

      --
      I've had enough abrasive sigs. Kittens are cute and fuzzy.
  10. How many have noticed? by MacAndrew · · Score: 5, Interesting

    ...that MS is more and more treated like some political institution rather than a company? E.g., the U.S. v. MS posed the two almost as equivalent entities. I can't imagine all this chatter about "leaked" memos from IBM or Adobe or Apple. Bill Gates is the potentate, MS the Empire, and so on -- at least as this is made out. Maybe Linus Torvald is Martin Luther?

    The paradigm is unique to the industry I think.

  11. Re:2 Microsoft articles in a row by xanadu-xtroot.com · · Score: 5, Interesting

    Sadly, I'll have to agree with this. I'm an NT Admin. I make my daily bread by supporting and using MS OS's. I just can't find a gig that'll pay me to Admin (or even use...) a *NIX OS.

    Flame me however you may (not the poster, just anyone who reads these words), but I have to put food on the table somehow, and I have yet to find a way to do that with *NIX. Perhaps I'm not looking hard enough (and that could very well be, but) I have an OK paying gig running an MS shop that is a 10 min drive from my house. That's pretty hard to beat.

    Alhough I certainly do not feel passionately about Microsoft, they are the reason I have a good paying job. It's mostly because their OS is crappy and needs constant support, but beside the point. I have a good job because MS exists.

    --
    I'm not a prophet or a stone-age man,
    I'm just a mortal with potential of a super man.
  12. the correct link to original memo by djtack · · Score: 5, Informative

    The link in the summary seems to point to the wrong memo. Here's the correct one.

  13. Re:2 Microsoft articles in a row by belloc · · Score: 5, Insightful

    The increasing number of articles devoted to Microsoft is somewhat disturbing.

    One great thing about Slashdot is cusomization. Almost everything is customizeable. That means that the Anti-MS zealots could choose to block every story except MS-related stories, effectively turning their Slashdot experience into the limit of what you're describing. They could then bash MS to their hearts' content.

    Also, you could block out every MS-related story, and never see another one again. Why don't you just do that?

    Belloc

    --
    I got more rhymes than Jamaica got Mangoes.
  14. Re:Microsoft better be concerned by pmz · · Score: 5, Insightful

    Sun does essentially the same thing...

    Okay.

    ...but is substantially more expensive...

    How so?

    ...has less application support...

    It depends on your point-of-view.

    ...and generally also requires hiring expert technicians.

    You'd rather have non-experts running systems that your business depends on? All but the smallest networks require experts from initial network architecture to end-user support.

    Microsoft products just do what they're supposed to do, and do them reasonably well.

    Other options, such as OS/2, Beos, Wordperfect, etc. have all come and gone at Microsoft's whims yet they were all arguable better than MS' offerings. Microsoft's products do approximately what their marketing department says they do, but not nearly as well as advertised. It's pretty rare that I'm actually impressed by one of Microsoft's products after I get to use it.

    This is why Microsoft has the edge, it's EASY.

    Not really. Microsoft's current edge really is founded on their downright predatory business and marketing tactics over the past two decades.

    The overhead to pay MS for software and support is less than hiring Senior UNIX Admins, and that's basically what it all comes down to.

    It really depends on the size of the network. UNIX scales better in cost as the size of the network increases. Unless, of course, the company is locked into Exchange, for example.

  15. Re:Microsoft better be concerned by Mnemia · · Score: 5, Interesting

    I disagree wholeheartedly. 2k has been FAR more stable than XP Pro in my experience. 2k is just about as stable as Linux is, and my applications rarely if ever crashed under it. XP on the other hand has totally locked on me on several occasions and frequently causes applications to crash...the same applications that never crashed under 2k.

    That combined with the major speed hit over 2k and the DRM EULAs is enough. MS should've left out the bloat they added to XP...about the only useful new additions are superior Plug and Play and ClearType. Those are not worth the degraded stability and 30% lower performance IMHO.

  16. And in other news by cjmckenzie · · Score: 5, Insightful

    And in other news, Microsoft STILL runs some of its servers on FreeBSD, Linux. Check out http://uptime.netcraft.com/up/graph/?host=a147.ms. a.microsoft.com and http://www.netcraft.com/whats/?host=ad.law10.hotma il.com for info. (see how they try to secure this information by obscuring it down a few layers? How Effective!) MS using linux is like Senator Joseph McCarthy carrying around The Communist Manifesto with him.

  17. Authenticity of the halloween docs... by Raleel · · Score: 5, Insightful

    Really, I might believe one of these, maybe even 2 or 3, but 7? Come on...where are these coming from, and what are their motivations? Are these really leaked? or are these deliberate misinformation?

    --
    -- Who is the bigger fool? The fool or the fool who follows him? --
  18. Microsoft Fails to "Get It" by zentec · · Score: 5, Insightful


    Oh Microsoft, you don't get it, let me count the ways.

    Bad-mouthing Linux doesn't work. It fails because people _like_ Linux, and Linux _works_. What else can you say? Trying to tell people that a free operating system has a higher cost of ownership than their product which costs hundreds or thousands of dollars makes Microsoft look foolish. Arguing that "you'll need to pay people to maintain it" is almost laughable.

    Microsoft, the life cycle of your products is deplorable. It used to be that businesses were willing to cede that due to hardware advances, they'd have to replace office PCs every 3-5 years. That's no longer the case. The office staff will hardly tell a difference between a Celeron 800 and the new Pentium 4 machines. So, businesses are finally going to get some realistic life out of the investment. However, Microsoft still wants to maintain the same life cycle of their operating systems. Even worse, if you don't fit into their upgrade schedule, you have security problems that are likely to be unresolved as your version of their OS retires. Microsoft, people are understanding that the insecurities of your operating system _work in your favor_ to promote the obscenely short life-cycles of your product.

    Microsoft fails to understand that their money grab in licensing changes, their unmitigated gall at calling their customers thieves via the BSA and many other ways of annoying the IT managers through-out the world has -- Microsoft, get ready for the clue here --

    _alienated customers_!

    That's right. Microsoft, take a long hard look at the likes of large monopolistic phone companies and see why people will opt for something that's not necessarily better, but tolerable in order to eliminate the intolerable dealings with Microsoft.

  19. Re:Microsoft better be concerned by ReelOddeeo · · Score: 5, Insightful
    Actually, Microsoft does produce a quality product

    Only now do they produce some quality products. This can be attributed to the fact that they have buckets of money to pour into development. Money that can be extorted from other market segments that have no choice but to buy.

    You don't think Microsoft spend $150 million improving IE just to give it away out of the goodness of their hearts? ($150 million according to trial testimony.)

    You don't think, a few years ago, Microsoft was giving away Microsoft Money for free out of the goodness of their hearts? (Prior to giving up on the idea of killing Quicken and then trying to buy them instead.)

    These are the classic tricks of the monopolist.
    • You can give away products for free, subsidizing them from customers who are locked in to something else you make.
    • You can develop quality products, after many poor releases that would have killed any other non-monopoly. Microsoft can afford as many screwed up releases as necessary to develop quality products. It simply doesn't matter. After some number of years, they'll get it right, and a whole new generation of Microsoft shills will appear to trumpet the goodness that is Microsoft.
    Lets face it, Linux has a long time to beat out Microsoft in Workstation land

    A long time ago, in a galaxy far, far away, people were saying that anybody, including Microsoft has a long time to beat out IBM in PC land. Now we have commodity hardware, and Microsoft, not IBM, makes all the profits. And it didn't take very long either. By 1985/6 the war was over. Things can have a way of snowballing. Microsoft seems to be very much on the defensive.

    You mentioned support and service. Modern Linux distros are getting pretty darned good if you hadn't noticed. Now both Red Hat has announced their intentions to go after the desktop. SuSe, and others, too.

    for companies that want to be able to hire any random Joe for pennies and not have to document every step of their network, Microsoft is more or less the only choice.

    Trained chimpanzees for admins? No documentation? Sounds like either:
    • A recipe for disaster
    • nothing custom or innovative being done (In which case, the same reasoning would apply to Linux, install out of the box, nothing custom.)
    This is why Microsoft has the edge, it's EASY

    This is why Microsoft has the edge: It's a MONOPOLY!

    With an already segmented market!

    (Segmentation is another monopolist trick. Take an identical product, and at no cost, or tiny cose, turn it into multiple market segments. Hence, XP Home, XP Embedded, XP Pro, XP Advanced Server, XP DataCenter, XP Media PC, etc. Got competition in one segment? Crush it, subsidizing it by charging the other segments.)
    --

    Those who would give up liberty in exchange for security and DRM should switch to Microsoft Palladium!
  20. Re:Advocacy howto (I care) by gosand · · Score: 5, Insightful
    Organizations refine their marketing all the time. And incidentally, Linux and open source in general is the #1 threat to Microsoft... and also to Sun. I don't doubt there is a similar pro-Solaris, pro-SPARC, anti-Linux, anti-Intel memo within Sun's sales organization.

    To state the obvious, Sun isn't Microsoft. Microsoft is a convicted, predatory monopolist. They have the money and the power to completely ruin OSS, as soon as they figure out how to do it. Don't think they aren't trying.

    OSS isn't a company they can buy. It is difficult to sqaush something that is intangible and revolutionary. This is interesting to me because I love OSS, GNU/Linux in particular. I don't want to see it go away, and I want to know what Microsoft thinks about it, and what their strategies are. I want everyone else to know this too, especially the people who are able to fight against Microsoft.

    --

    My beliefs do not require that you agree with them.

  21. Re:Microsoft better be concerned by Rooktoven · · Score: 5, Funny

    Actually, Microsoft does produce a quality product

    True, but you can't run a server or a decent desktop with just an intellimouse...

    --

    Acquiescence leads to obliteration
  22. Re:Microsoft better be concerned by mangu · · Score: 5, Insightful
    we couldn't get XP Pro to spit out BSODs when 2K would do it running the same tests on the same hardware.


    You must be mistaken. According to Microsoft, Windows 2000 NEVER BSODs. And neither do XP, NT4, Me, 98, 95, WfW, 3.1, or 3.0 either.


    On the other hand, Linux DOES freeze from time to time. Happened to me this afternoon. Had to go all the way to the neighboring cube and telnet to the machine and run top to see which X-windows application was eating 99% of the cpu time, and then kill -9 it. That's what happens when one develops real time applications under root. Lucky for me, Linux has the /var/log/messages file to see what happened.


    Yeah, sure, Linux is something only those fanatics at /. can work with. Now excuse me, you can go back to your wonderful 6Mb binary registry file, I'm sure you love the power it gives you. I wonder how many thousands of consultants have made millions of $, just by changing a few registry entries...